Single Premium Immediate Annuities

Clients approaching retirement or already retired are seeking ways to minimize market risk on their retirement assets. Some may have suffered market losses and need time for them to recover. Incorporating a Single Premium Immediate Annuity (SPIA) into a diversified retirement plan is very attractive to those clients that do not want market performance dictating their retirement lifestyle. Clients can deposit savings into a SPIA to cover their fixed monthly expenses, for a certain period of time or a lifetime, while keeping the rest of their assets invested and hopefully growing for future use. Once these core expenses are covered, clients will feel more comfortable keeping other assets invested in the market.

The following charts explain the monthly guaranteed lifetime payouts one can expect off of a $100,000 deposit:

Male

Age

Monthly Income
Guaranteed

60

$577.49

65

$639.60

70

$729.19

75

$843.91

80

$1005.54

Female

Age

Monthly Income
Guaranteed

60

$541.98

65

$591.73

70

$665.45

75

$774.84

80

$925.17

The Advantages of a SPIA

Peace of mind knowing fixed expenses are covered

Investment risk elimination – regardless of what happens in the market, a SPIA is protected from loss

Ability to be aggressive with other investments since core expenses are covered

Income that cannot be outlived

Strong return on investment

Portion of income exempt from taxation (to life expectancy)

Put the Idea Into Action

Paul Conner is 62 and is thinking about retiring. He is evaluating his retirement plan and his financial professional suggests depositing $100,000 from his IRA into a SPIA and start receiving income today to supplement his income. Paul thinks he is too young and that it is better to wait until he is older where the payments will be higher and his retirement assets will be allowed to grow.

While the SPIA payments will be larger when he is older, he will be missing out on a significant amount of income over his lifetime by waiting until age 70.

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“David helped me research annuities and eventually buy one. He and his staff were insightful, helpful, and (perhaps most importantly) patient. I have recommended him to friends, and I expect to do so again.”

– Gary Sawyer

“David should be everyone’s Go To Guy for Annuity advice!”

– Don Brier

The Cost of Waiting

$100,000 SPIA at age 62*

Yearly Income

Yearly Income

Total Lifetime Income

Total Lifetime Income

Return on Investment

Return on Investment

$100,000 SPIA at age 70**

Yearly Income

Yearly Income

Total Lifetime Income

Total Lifetime Income

Return on Investment

Return on Investment

The Cost of Waiting

By waiting until age 70 to open a SPIA, Paul would have lost $36,932 in income over eight years. In order for him to make up this income loss, he would have had to deposit approximately $116,000 into a SPIA instead of $100,000.

* Life only SPIA based on the average life expectancy of a 62 year old, which is 22.5 years.** Life only SPIA based on the average life expectancy of a 70 year old, Which is 16 years.

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1-844-ANNUITIES (844-266-8484)

"David helped me research annuities and eventually buy one. He and his staff were insightful, helpful, and (perhaps most importantly) patient. I have recommended him to friends, and I expect to do so again." - Gary Sawyer

"David should be everyone’s Go To Guy for Annuity advice!﻿" - Don Brier